FATCA And Trustees: Part I

Do trustees need to register with the US Internal Revenue Service (the "IRS") before 1 January 2015?  Does registration need to be made in respect of a trust? 

These questions need to be given due consideration by Cayman Islands and British Virgin Islands ("BVI") trustees and the trusts in respect of which they act. 

Firstly, it is important to note that both the Cayman Islands and the BVI have legislation which mirrors many of the due diligence and reporting requirements of the US Foreign Account Tax Compliance Act ("US FATCA") and that such legislation applies to all Cayman Islands and BVI Financial Institutions (as defined below) regardless of whether such entities have connections to the US or receive US sourced income.